Continuous Auditing in ERP System Environments: The Current State and Future Directions

43 Pages Posted: 25 Nov 2009  

Randy Kuhn

University of South Florida - School of Accountancy

Steve G. Sutton

University of Central Florida - College of Business Administration

Date Written: November 23, 2009

Abstract

Recent research has focused heavily on the practicality and feasibility of alternative architectures for supporting continuous auditing. In this paper, we explore the alternative architectures for continuous auditing that have been proposed in both the research and practice environments. We blend a focus on the practical realities of the current technological options and ERP structures with the emerging theory and research on continuous assurance models. The focus is on identifying the strengths and weaknesses of each architectural form as a basis for forming a research agenda that could allow researchers to contribute to the future evolution of both ERP system designs and auditor implementation strategies. There are substantial implications and insights that should be of interest to both researchers and practitioners interested in exploring continuous audit feasibility, capability and organizational impact.

Keywords: Continuous assurance, continuous auditing, continuous monitoring, enterprise systems, enterprise resource planning (ERP) systems, enterprise risk management, embedded audit modules, management control layer

JEL Classification: M40, 032

Suggested Citation

Kuhn, Randy and Sutton, Steve G., Continuous Auditing in ERP System Environments: The Current State and Future Directions (November 23, 2009). Available at SSRN: https://ssrn.com/abstract=1511990 or http://dx.doi.org/10.2139/ssrn.1511990

Randy Kuhn

University of South Florida - School of Accountancy ( email )

4202 E. Fowler Avenue, BSN 3403
Tampa, FL 33620-5500
United States

Steve G. Sutton (Contact Author)

University of Central Florida - College of Business Administration ( email )

PO Box 161400
Orlando, FL 32816
United States

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